Universities play a crucial role in shaping local economies by driving employment, fostering business growth, attracting investment, and enhancing the overall quality of life in their host communities. Their economic impact extends beyond direct spending to include long-term benefits such as workforce development, innovation, and cultural enrichment. Below, we explore the key ways in which a university influences a local economy.
- Direct Employment and Spending
A university is often one of the largest employers in a local area, providing jobs for faculty, administrative staff, maintenance workers, and other professionals. These employees spend their salaries on housing, groceries, transportation, and entertainment, injecting money into the local economy. Additionally, universities spend significant amounts on construction, utilities, and local services, further stimulating business activity.
Students also contribute to local spending. Many bring outside money into the community through tuition payments, federal aid, and personal expenditures on rent, food, and retail. A large student population can sustain businesses such as bookstores, coffee shops, restaurants, and housing providers.
- Business Development and Entrepreneurship
Universities often serve as hubs for innovation and entrepreneurship. Research institutions, business incubators, and technology transfer offices help commercialize academic research, leading to startup formation and industry partnerships. For example, Stanford University's role in Silicon Valley's growth demonstrates how academic institutions can spur regional economic development.
Local businesses benefit from university partnerships, including procurement contracts for supplies, catering, and maintenance services. Furthermore, universities attract conferences, sporting events, and cultural activities that generate tourism revenue for hotels, restaurants, and transportation services.
- Human Capital and Workforce Development
A well-educated workforce is essential for economic competitiveness. Universities produce graduates with specialized skills that attract high-paying industries, such as technology, healthcare, and finance. Many graduates remain in the area, filling critical roles in local businesses and government.
Universities also offer continuing education programs, professional certifications, and workforce training initiatives that help upskill local employees, making the regional labor market more adaptable to industry changes.
- Real Estate and Infrastructure Growth
The presence of a university can drive demand for housing, both from students and faculty. This often leads to the development of new apartments, condominiums, and mixed-use commercial spaces. Over time, universities contribute to urban revitalization by investing in campus expansions, public transit improvements, and community amenities like libraries and parks.
However, rapid growth can also lead to challenges, such as rising housing costs and gentrification, which may displace long-term residents. Local governments must balance economic expansion with policies that ensure affordable housing and equitable development.
- Cultural and Social Contributions
Beyond economics, universities enrich local culture through arts programs, public lectures, and athletic events. These activities improve residents' quality of life, making the area more attractive to businesses and skilled workers. A vibrant university town often sees increased property values and a more diverse, engaged community.
Conclusion
The economic impact of a university on a local economy is multifaceted, encompassing job creation, business growth, talent development, and infrastructure investment. While challenges such as affordability and displacement must be managed, the long-term benefits-including innovation, increased tax revenues, and a more dynamic workforce-make universities vital engines of regional prosperity. By fostering collaboration between academia, government, and industry, communities can maximize these advantages while ensuring inclusive growth.
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Saint Anthony College of Nursing |
Stautzenberger College-Rockford Career College |
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Beloit College |
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Maranatha Baptist University |
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Rockford University |
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Rasmussen University-Illinois |
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Edgewood College |
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Herzing University-Madison |
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Rock Valley College |
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University of Wisconsin-Whitewater |
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University of Wisconsin-Madison |
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Percent admitted - total Admissions yield - total
Full-time enrollment Part-time enrollment
Total enrollment % White % Black % Asian % Hispanic % Native Hawaiian or Other Pacific Islander % American Indian or Alaska Native % two or more races % Race/ethnicity unknown % U.S. Nonresident
Undergraduate enrollment % under 18 % 18-24 % 25-64 % over 65
Graduate enrollment
Student-to-faculty ratio
Tuition and fees, 2020-21 2021-22 2022-23 2023-24
Total price for In-district students living on campus 2023-24 In-state students living on campus 2023-24 Out-of-state students living on campus 2023-24
In-district students living off campus (no family) 2023-24 In-state students living off campus (no family) 2023-24 Out-of-state students living off campus (no family) 2023-24
In-district students living off campus (w/ family) 2023-24 In-state students living off campus (w/ family) 2023-24 Out-of-state students living off campus (w/ family) 2023-24
Associate's degree Bachelor's degree Master's degree Doctor's degree - research/scholarship Doctor's degree - professional practice Doctor's degree - other
Instructional FTE Research FTE Public Service FTE Librarians, Curators, and Archivists FTE Student/Academic Affairs and Other Education Services FTE Management FTE Business and Financial Operations FTE Computer, Engineering, and Science FTE Community Service, Legal, Arts, and Media FTE Healthcare FTE Service FTE Sales and Related FTE Office and Administrative Support FTE Natural Resources, Construction, and Maintenance FTE Production, Transportation, and Material Moving FTE Total FTE staff
|
43
29
44,928
4,677
49,605
57
3
9
8
0
0
4
3
15
36,797
1
96
3
0
12,808
18
10,742
10,720
10,796
11,205
28,905
28,905
58,303
28,905
28,905
58,303
16,105
16,105
45,503
0
8,121
2,871
767
685
0
4,248
1,379
50
203
515
1,104
2,016
3,444
2,002
693
1,381
14
1,303
554
135
19,041 |
83
24
8,871
2,648
11,519
79
5
2
9
0
0
3
1
1
9,812
3
86
10
0
1,707
20
7,735
7,730
7,864
8,250
19,560
19,560
29,226
19,890
19,890
29,556
11,790
11,790
21,456
172
1,860
625
0
8
0
495
0
0
14
17
97
57
40
133
8
119
0
106
30
11
1,127 |
NA
NA
2,405
3,075
5,480
56
8
4
25
0
0
2
4
0
5,480
12
63
25
1
0
18
4,124
4,124
4,124
4,274
NA
NA
NA
19,153
25,153
36,223
9,046
15,046
26,116
819
NA
NA
NA
NA
NA
184
0
0
6
6
52
17
18
96
0
37
0
66
0
0
482 |
94
68
2,347
1,891
4,238
39
35
5
12
0
1
3
5
0
2,181
0
20
80
0
2,057
19
14,200
14,200
12,750
13,420
NA
NA
NA
28,414
28,414
28,414
16,453
16,453
16,453
164
228
426
0
0
0
240
0
0
4
210
61
21
24
25
0
0
1
8
0
0
594 |
95
18
1,602
399
2,001
73
5
3
9
0
0
3
4
1
1,214
4
87
9
0
787
13
31,700
32,600
33,550
34,850
51,152
51,152
51,152
49,760
49,760
49,760
38,960
38,960
38,960
0
305
142
14
2
0
136
0
0
6
29
33
22
15
48
5
37
0
11
0
0
342 |
NA
NA
449
883
1,332
16
50
3
14
0
1
2
14
0
1,332
0
19
81
0
0
7
12,311
11,743
11,738
13,546
NA
NA
NA
29,314
29,314
29,314
19,378
19,378
19,378
967
0
0
NA
NA
NA
111
0
0
0
25
16
3
0
0
0
0
0
9
0
0
164 |
57
11
979
270
1,249
43
13
2
16
0
0
3
14
8
968
0
82
17
0
281
10
33,050
34,000
35,050
37,300
52,900
52,900
52,900
50,150
50,150
50,150
42,400
42,400
42,400
0
204
102
0
0
0
103
0
0
2
0
30
7
5
19
3
2
0
28
0
0
199 |
71
70
475
502
977
81
1
5
6
0
0
3
2
2
759
26
63
11
0
218
10
17,650
18,050
18,810
20,280
37,686
37,686
37,686
37,812
37,812
37,812
28,886
28,886
28,886
23
94
96
0
0
5
58
1
0
3
11
20
7
6
6
1
13
3
12
6
1
148 |
57
10
916
32
948
51
8
3
17
0
0
4
3
14
948
3
94
3
0
0
11
53,348
54,680
56,312
58,554
71,959
71,959
71,959
73,321
73,321
73,321
61,219
61,219
61,219
0
211
0
0
0
0
86
0
0
5
0
51
26
10
23
0
33
0
35
11
0
280 |
NA
NA
733
0
733
35
30
1
28
0
0
5
1
0
733
0
44
56
0
0
28
16,649
16,799
16,699
16,699
NA
NA
NA
33,753
33,753
33,753
19,353
19,353
19,353
81
NA
NA
NA
NA
NA
26
0
0
1
1
16
1
1
0
0
0
9
7
0
0
62 |
100
100
106
122
228
71
6
7
15
0
0
0
0
0
152
0
55
45
0
76
6
27,460
27,611
27,811
27,811
NA
NA
NA
41,877
41,877
41,877
33,711
33,711
33,711
0
89
5
0
0
16
29
0
0
1
2
4
2
0
1
0
0
0
5
0
0
44 |
Sources: STI: PopStats and STI: Colossus
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